How Does a Covered Call Strategy Generate Income on a Crypto Holding? ⎊ Path

How Does a Covered Call Strategy Generate Income on a Crypto Holding?

A covered call strategy involves owning the underlying cryptocurrency (e.g. Ethereum) and simultaneously selling (writing) a call option against it.

The seller collects the premium from the buyer, which provides immediate income. If the Ethereum price stays below the strike price, the option expires worthless, and the seller keeps the premium and the learn.

This strategy limits upside potential but generates consistent income.

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